The First Trade… Reversal of misfortune.

Proper context can start the day with a solid win and make all the difference.

CHARTROOM LINK(s)
o Win XP-Friendly entry
o non-xp friendly (ilinc)
(pre-open Market Tour begins at 8:55 ET)

Through the prior close…
Thursday”s post-close reversal had trended up overnight to gap up Friday at Wednesday”s 2068.00 opening high. Reacting down this time held 2060.00 and resumed trending through the day, albeit shallowly. The rally gained traction from a late-afternoon attack on 2075.00, reacting down to test the open”s 2068.00 high.

Overnight action”s new info…
Weekend developments surrounding Greece were quite different from Thursday”s post-close catalyst. Sunday night”s gap down touched 2052.00, retracing 61.8% of the rally from Wednesday”s low to Thursday”s high. I noted in the chaRTroom that could have been much worse. Recovering back to unchanged was corrected before surging past Friday”s highs to 2079.00 through Europe”s opens. That has extended to attack 2088.00, as much into positive territory as Sunday night”s gap down was negative.

If, then…
Friday”s rally had gained traction, so trending up this morning all but requires extending a gap up through the open. And the indicated gap up would break above the two-week trading range highs where previous gaps up went to die. A reaction down could test the range”s “lower prior highs” down to the 2073.00 area before suggesting another recovery effort has failed.

First Trade…
Exiting the open at 9:45 above 2081.50 would suggest the 2078.50 bias-up target will remain recovered through 10:15 to renew the bias-up signal. Exiting the open under 2068.25 would be unlikely to trigger the 2073.50 bias-up signal at 10:15.